Latest / Mini Scroll / MINI TECH SCROLL: US TikTok deal breakdown, AI actress prompts outrage + Snapchat charges for Memories storage
Transcript
- 0:00This episode of Mini Tech Scroll is brought to you by Blackbird,
- 0:03a venture capital firm investing in Aussie and Kiwi startups.
- 0:06From the very beginning, Blackbird invests in all kinds
- 0:09of technology. So if you have a big idea but
- 0:11need to raise investment to turn it into reality, learn more and
- 0:14connect with the Blackbird team through the link in our show
- 0:17notes. Hey everyone, and welcome to
- 0:19Mini Scroll, the daily Internet culture podcast bring you the
- 0:22biggest stories from social media, the creator economy and
- 0:25the digital space. Every Monday through Thursdays
- 0:28and sometimes Fridays. My name is Annabelle Well and
- 0:30I'm your Wednesday Mini Tech Scroll host and also the deputy
- 0:33editor of the youth digital media brand Centennial World.
- 0:36Welcome back to Mini Tech Scroll.
- 0:39I am back after I had a week off last week and I am excited
- 0:43because we have a lot to talk about.
- 0:46I do want to note though that like a couple of weeks ago, this
- 0:49episode is actually being pre recorded.
- 0:51So it was recorded yesterday for you.
- 0:54If you are watching this on the day it was uploaded, usually we
- 0:58prepare, record, edit, and upload all on the same day.
- 1:02That is not the case of this week clearly, but I think we
- 1:05will be back to our regular schedule next week.
- 1:07So the reason I just wanted to flag this is because if
- 1:10anything, exciting, relevant, monumental breaks overnight and
- 1:15we don't cover it. That is why I just like to do a
- 1:17little bit of a preface if I'm prerecorded, Please remember to
- 1:21rate, review and subscribe and star rate US on Spotify
- 1:24specifically. Lauren is really pushing you
- 1:27guys to help us get to 1000 and you guys are really showing up
- 1:31so that is much appreciated. We also have a buy me a coffee
- 1:34link in the description if you are so inclined.
- 1:37But yes, let's get in to the content.
- 1:40As Lauren promised you last week.
- 1:42I fear I am coming to you today for my 85th update on the TikTok
- 1:47ban in the United States. Obviously I haven't covered this
- 1:5085 times, but that is what it feels like.
- 1:52I think this is going to be the bulk of the episode.
- 1:55So if you are sick of the TikTok ban, I am sorry.
- 1:58Come back next week or skip to the next stories.
- 2:01I do have a love hate relationship with this topic.
- 2:03I do find it so interesting, but I feel like we've just been
- 2:06talking about it for so long at this point.
- 2:09It's honestly just comical how frequently I have to bring this
- 2:13up. But yes, this might be one of
- 2:16our final updates on this saga. If you have somehow not caught
- 2:20one of my 1000 episodes I have covered the TikTok ban in.
- 2:24I will give you a quick summary, which I'm sure regular listeners
- 2:27of mini Tech Scroll could quite literally recite with me at this
- 2:31point, but here we go Last year, legislation passed in the United
- 2:35States that ban TikTok from operating in the US unless a
- 2:38deal was struck for AUS approved buyer to purchase the app and
- 2:42Byte Dance, which is Tik Tok's Chinese owned parent company,
- 2:45divested the issue around Byte dance owning TikTok was framed
- 2:49as a national security issue with legislators concerned about
- 2:53China's collection of US user data, its access to it and also
- 2:57how it would use it. There were also concerns about
- 3:00the powerful nature of the algorithm and the dissemination
- 3:03of information when it came to the algorithm.
- 3:06Granted, the fears around TikTok have been going on for like 5
- 3:09years now, started back in 2020 in Trump's first term.
- 3:13But I guess between then and now he has decided that he likes the
- 3:17platform, probably because arguably it helped him win the
- 3:20election. But that's the conversation for
- 3:21another time and one that we've also covered.
- 3:23But when Trump came in to office at the beginning of this term,
- 3:27he was facing the ban's deadline for a deal to be struck with
- 3:31Byte Dance. And obviously that led to TikTok
- 3:34going offline for I think it was like 12 hours or something and
- 3:37ended up being taken down off app stores.
- 3:40Obviously, as we all know by this point, Trump ended up
- 3:42extending the deadline of the ban like 4 times, which honestly
- 3:45was legally questionable because he was using executive powers to
- 3:48do so. And this ban had passed through
- 3:50Congress. But anyway, I guess it doesn't
- 3:52matter now if a deal is going through.
- 3:54So the last time I reported on this was basically to say that
- 3:58US and China had come up with a framework to keep TikTok
- 4:00operating in the United States. This was, I think 2 weeks ago
- 4:03now. There haven't been much revealed
- 4:05about what this would look like, but there are some more updates
- 4:08that we should cover. The biggest news that has come
- 4:11out about all this since we covered it last was that Trump
- 4:15signed an executive order to transfer TikTok to US owners and
- 4:19this went down last Thursday. The quote saving TikTok while
- 4:22protecting national security executive order outlines the
- 4:25deal and there are four key points to take away from it.
- 4:29The first is that TikTok will be quote, majority owned and
- 4:32controlled by United States persons whereby Dance will quote
- 4:36own less than 20% of the entity with the remainder being held by
- 4:40certain investors, brackets, investor parties.
- 4:43And with this, there will also be a new board of directors,
- 4:45which we'll talk about a little bit more later.
- 4:47The next point is on the algorithm, which has obviously
- 4:51been the major sticking point of striking a deal with China
- 4:54because this is not something that Bite Dance necessarily
- 4:56wants to sell. But as far as the algorithm
- 4:59goes, the executive order says, quote, the divestiture puts the
- 5:02operation of the algorithm and code as well as content
- 5:05moderation decisions under the control of the new joint
- 5:08venture. Obviously, that is somewhat
- 5:10vague and we'll get into the reporting and expectations of
- 5:14what this looks like a little bit later.
- 5:16The next point is that the divestiture will ensure that
- 5:19sensitive data from US users will remain in American hands.
- 5:22And lastly, the divestiture will allow for monitoring of software
- 5:27updates, algorithms and data flows by US security partners.
- 5:30There is obviously just so much to unpack here and I will try my
- 5:34best to give it to you in a succinct and interesting manner.
- 5:38But let's first start with the group of American investors and
- 5:42what that looks like. So this group is led by the
- 5:45software company Oracle. And for reference, Oracle Cloud
- 5:48servers have already been storing US TikTok data since
- 5:512020 at this point. But the interesting and maybe a
- 5:55little bit concerning aspect of Oracle leading the investment is
- 5:59that Larry Ellison is the Co founder and Larry Ellison is a
- 6:03very close ally to Trump. For reference, Ellison hosted
- 6:07fundraisers for Trump in 2020 and executives at Oracle have
- 6:10been involved in Trump's political team or surroundings
- 6:14for almost his whole political career at this point.
- 6:16If you want to know more about Larry Ellison's career and his
- 6:20political views, the VAGE published an interesting piece
- 6:22about him and his trajectory. If you're interested, I have
- 6:25linked it in the description along with many other sources
- 6:28this week that I've read, so hope you enjoyed that.
- 6:30But journalists, experts, and TikTok users have flagged how
- 6:34concerned they are over what Larry Ellison's and Oracle's
- 6:37involvement means for the future of TikTok and free speech.
- 6:41But this is a reoccurring issue, so stay tuned.
- 6:43So while Oracle is leading the consortium, there are of course
- 6:47other investors and there have been a couple different names
- 6:50and companies mentioned across the current report, including
- 6:54the private equity company Silver Lake, a venture capital
- 6:57firm Anderson Horowitz, media mogul Rupert Maddock, as well as
- 7:01Abu Dhabi's tech investment fund MGX.
- 7:04But not all have been confirmed at the time of recording.
- 7:06I'm sure more will be coming out.
- 7:08Maybe you even know more than me by this point.
- 7:10I've seen some takes that MGX's stake is very interesting
- 7:14because that is obviously not AUS based company, but
- 7:17apparently that is fine in this context I guess.
- 7:20Having said that though, one thing that is fairly consistent
- 7:23across the investors or the rumoured investors is that they
- 7:26are all allies of Trump's, which has only reinforced the concerns
- 7:30about TikTok going quote UN quote, full MAGA or down the
- 7:33MAGA pipeline. But the prospect of this depends
- 7:37on how the algorithm will operate.
- 7:39And there are a lot of remaining questions around the control
- 7:42that investors will have over the information and content that
- 7:45will be prioritized in this new form of TikTok.
- 7:49It currently looks like US investors will be able to take
- 7:52charge of a license copied of the app's recommendation
- 7:55algorithm, and the algorithm will then have to be retrained.
- 7:59So it seems it's definitely quite early to say for sure what
- 8:04retraining the algorithm will even look like, although it's
- 8:07probably safe to say that it will be similar to how it exists
- 8:10now with the goal of keeping users on the platform.
- 8:13There's also a likelihood that there will be some political
- 8:16posturing slash agenda pushing potentially happening within
- 8:19this new form of the algorithm. At least that is what generally
- 8:23experts and TikTok users are expecting.
- 8:25And obviously this comes down to the fact that many of the
- 8:28investors are in fact allies of Trump.
- 8:30And also, this isn't something that is necessarily new to the
- 8:33discussion around TikTok and the algorithm.
- 8:36This year, we've seen a lot of conversation around the types of
- 8:38political content that TikTok pushes out, especially in
- 8:41relation to Gaza, Israel, and Palestine more broadly.
- 8:44I also want to say, correct me if I'm wrong, but I do think
- 8:47it's quite interesting how the algorithm is being licensed to
- 8:51the USI have seen reports that Byte Dance will be actually
- 8:54receiving a licensing fee. As reported by Bloomberg quote,
- 8:57Tik Tok's Chinese parent company will likely get about half of
- 9:01the profit from the platform's US operation even after it sells
- 9:04majority ownership to American investors as part of a deal
- 9:07orchestrated by President Donald Trump, according to people
- 9:10familiar with the matter. By Dance is expected to receive
- 9:13a licensing fee on all the revenue generated from making
- 9:16its algorithm available to the US operating entity, as well as
- 9:19a share of the profit in proportion to its equity stake,
- 9:22said the people. From so much of the reporting,
- 9:24it seems like China still owns the algorithm and I wonder if
- 9:28that will be enough to satisfy the requirements of the original
- 9:32legislation. I have seen a take from the New
- 9:34York Times that claimed that if the United States truly wanted
- 9:38to manage propaganda on apps like TikTok, quote, lawmakers
- 9:42should require TikTok and beyond it all social media platforms to
- 9:45publish live, searchable databases of their posts, which
- 9:49researchers, journalists and lawmakers can use to track
- 9:51online discourse. And I think that is a very
- 9:54interesting point, especially with the new concerns around the
- 9:58consortium of investors and their political agenda.
- 10:01If one is going to be pushed, this suggestion would in theory
- 10:05make it easier to to track what is being pushed out and what
- 10:08people online are talking about. OK, now that we've covered the
- 10:12logistics, I guess let's talk about what this means for the
- 10:17future of TikTok. There are so many questions
- 10:20about what this deal will look like, so it is hard to make any
- 10:24predictions. Also, I do think things will
- 10:27likely change between now and when everything has settled, but
- 10:30based on what we know. I've seen some interesting takes
- 10:33and questions and I have a lot of thoughts, so bear with me as
- 10:36we get through them. The first is the idea that this
- 10:39might be the beginning of the end of TikTok, which is
- 10:42something I could potentially see being the case with the deal
- 10:45looking how it is right now, it's likely that the user
- 10:48experience will change and it may not all be positive.
- 10:51The algorithm is definitely what keeps all of us on TikTok, and
- 10:55that is going to change because it has to be retrained.
- 10:59The algorithm as it is now is something that has already
- 11:02proven to be quite difficult to replicate.
- 11:05We have seen that with the rise of other short form video feeds
- 11:07on other platforms, none of them are doing the same or maybe feel
- 11:12as personalized as TikTok, so I think it's fair to say that many
- 11:15users have their doubts about how the algorithm will perform
- 11:18after being retrained. On the flip side though, I do
- 11:22think it's worth noting that even though no short form video
- 11:25feed has succeeded in the same way as TikTok, this isn't 2020
- 11:29where TikTok is the only option. This might make users more
- 11:33willing to leave the app and turn to places like Reels.
- 11:35And honestly, obviously Reels has an insane culture, which I
- 11:39enjoy. Like I kind of like the brain
- 11:41rot and I get way more brain rot on Reels than I do on TikTok.
- 11:45In a similar vein to this, I actually had a really
- 11:47interesting take on The Verge cast, which is the podcast by
- 11:51The Verge where the host was speculating whether TikTok is on
- 11:54the same trajectory as Myspace. Myspaces downfall actually
- 11:58started right after News Corp acquired the platform, which is
- 12:02obviously owned by the Murdoch family.
- 12:05So I don't know if that's necessarily really a good sign
- 12:07since Rupert Murdoch is allegedly part of this
- 12:09consortium. To briefly summarize it for you,
- 12:12when Murdoch took over Myspace, the whole culture of the
- 12:15platform changed, and not in a good way.
- 12:17In the years since, Murdoch has discussed the failure of Myspace
- 12:21and actually placed the blame on himself.
- 12:23If you want to learn more about the rise and fall of Myspace, we
- 12:27actually did a whole platform deep dive into it.
- 12:29And it's really interesting to learn about the origins of these
- 12:32platforms, especially Myspace, because I was never on Myspace.
- 12:35It was a little bit before my time, but it was definitely an
- 12:38iconic part of Internet history. And lastly, on this potentially
- 12:42being the beginning of the end of TikTok, I don't think we can
- 12:45separate this with everything that has gone on in the US media
- 12:48landscape as of late, especially with the Skydance and Paramount
- 12:52merger and the fact that David Ellison, who is Larry Ellison's
- 12:55son, is now the CEO and chairman.
- 12:58So with conservative figures creeping into different parts of
- 13:02the media landscape, that might turn various TikTok users off
- 13:07the app. Another aspect that I think is
- 13:09important to discuss here is that there's also a lot of
- 13:11questions around TikTok, whether it will be getting its own app
- 13:15and whether US users will be able to see international
- 13:17content. Obviously, we reported, I want
- 13:20to say like a month ago or so on the speculation around the US
- 13:24getting its own separate TikTok app.
- 13:26I do wonder how this will play for US TikTok users if you're
- 13:30based in the USI think I asked this last time, but considering
- 13:33we know more about the deal, would you even download a new
- 13:37app? I feel like there definitely is
- 13:38an obstacle here to getting people to actually download a
- 13:41new app. And As for whether international
- 13:43content will still be available in this new era of TikTok, from
- 13:47the reporting I've seen, it looks like that will be the
- 13:50case. But I have seen reports that the
- 13:52algorithm will be trained based on US user data, so that might
- 13:56be a problem for international creators and brands that rely on
- 14:00US TikTok users potentially. OK, I think I just blacked out
- 14:03while talking about all of that. If that brings us to the end of
- 14:07the US TikTok ban coverage for this week, maybe forever.
- 14:11I have my doubts though, but hopefully that was comprehensive
- 14:14enough. Also succinct enough.
- 14:16I also do feel like that was long to be honest, but hopefully
- 14:19I got my point across. Let's move on.
- 14:21I do have two more quick stories for the rest of the episode and
- 14:24the first one we have to talk about is this AI actress that
- 14:27the industry is fighting over. The actress's name is Tilly
- 14:31Norwood and comes from an AI talent studio, which is a spin
- 14:34off of Particle 6. She reportedly made her debut at
- 14:38the Zurich Film Festival. Tilly appears as a young girl,
- 14:42probably a teenager or at most her early 20s.
- 14:45She has brown hair and is conventionally pretty.
- 14:48She also seemingly has an English accent when she speaks.
- 14:51She has already appeared in some projects led by Particle 6, with
- 14:55one being a comedy sketch called AI Commissioner.
- 14:58Since her reveal, though, the founder and CEO of Particle 6,
- 15:02Elaine van der Velden, has been at the center of controversy.
- 15:07And fair enough, because many social media users and people in
- 15:11the industry are upset of the prospect of an AI actress taking
- 15:15away roles from real people, which is obviously something
- 15:18that we have discussed here at length on the podcast in
- 15:21relation to actresses, actors, and models.
- 15:24This is also something that the SAG after strike was trying to
- 15:27protect actors from. And a number of celebrities have
- 15:30weighed in, expressing their discontent about Tilly, ranging
- 15:33from Lucas Gage to Toni Collette.
- 15:35This is ultimately prompted van der Velden to respond to the
- 15:39backlash. I'll read you a part of the
- 15:41statement now, and this was posted on Instagram.
- 15:44Quote to those who have expressed anger over the
- 15:46creation of our AI character. She is not a replacement for a
- 15:49human being, but a creative work, a piece of art.
- 15:52Like many forms of art before her, she sparks conversation and
- 15:55that in itself shows the power of creativity.
- 15:57I see AI not as a replacement for people, but as a new tool, a
- 16:01new paintbrush. Just as animation, puppetry, or
- 16:04CGI opened fresh possibilities without taking away from live
- 16:07acting, AI offers another way to imagine and build stories.
- 16:11I'm an actor myself and nothing, certainly not an AI character,
- 16:15can take away the craft or joy of human performance.
- 16:18Even though I definitely agree that there is a difference
- 16:21between an AI actress and a human actress, this is
- 16:25concerning because even if AI is seen as separate to human
- 16:28actors, from a financial perspective, I don't know if the
- 16:32industry will ever reject AI actors fully.
- 16:35At the end of the day, it's cheaper and if they care about
- 16:37the bottom line, that is definitely something they would
- 16:39be thinking about. So I can totally see how this is
- 16:42a concern and it's interesting to see where the entertainment
- 16:46industry might be heading. And it isn't just a cross film.
- 16:49I saw a report recently actually that there is a world fast AI
- 16:54record label. So it might just be something
- 16:57that we are seeing across the board.
- 16:59And no matter the backlash from within specific industries
- 17:02within entertainment might not really do anything to stop this
- 17:05progress. Finally, my last story for today
- 17:08is a platform update about Snapchat.
- 17:11I will say sometimes I find platform updates kind of boring
- 17:14but I wanted to cover this story because it's something that is
- 17:17affecting me and I I thought it might affect some of you guys,
- 17:21but Snapchat will be soon introducing memory storage
- 17:25plans. Memories on Snapchat is a major
- 17:28feature on the app and it started in 2016 and according to
- 17:31a Snapchat blog, users have saved more than one trillion
- 17:34memories since then. I have been saving memories on
- 17:37Snapchat since the time that it came out.
- 17:40I literally can remember when Snapchat memories dropped.
- 17:43I'm sure many of you can as well, but Snapchat will now be
- 17:47asking users to pay if they have more than 5 gig gigabytes of
- 17:49memories stored on the app, according to the blog post
- 17:52quote. We want to make sure that our
- 17:53community can continue to store all of their memories over the
- 17:56long time, so we are introducing new memory storage plans to
- 18:00support Snapchatters with more than 5 gigabytes of memories.
- 18:03For the vast majority of Snapchatters who have less than
- 18:065 gigabytes of memories, nothing will change.
- 18:08For Snapchatters with more than 5 gigabytes of memories, meaning
- 18:11thousands of snaps, we are rolling out new options to
- 18:14upgrade and increase storage. The introductory memories
- 18:17storage plans offer 100 GB, 250 GB with Snapchat Plus, or five
- 18:23terabytes with Snapchat Platinum.
- 18:25The blog post also noted that the platform will provide 12
- 18:28months of temporary memory storage for those over the five
- 18:31GB storage limit. Unfortunately, I think I am over
- 18:35the five GB storage limit because when I used to have a
- 18:38phone that had limited storage space, I would save everything
- 18:42on Snapchat. Obviously I understand in theory
- 18:44why Snapchat is making this move because it clearly incentivizes
- 18:48users to pay for Snapchat Plus, which has been around since
- 18:522022, but it is just more revenue for the company.
- 18:55At the same time, I can totally see why users are upset.
- 18:58Going from getting a service for free to having to pay for it is
- 19:02not ideal, especially dealing with the high cost of living all
- 19:05around the world. But this is especially upsetting
- 19:08when it comes to personal content like Memories.
- 19:10Many users are probably already paying for iCloud Google Drive,
- 19:14so I'm curious how many people would want to add Memories onto
- 19:18that as well. Well, from my research though,
- 19:20there are ways to mass export memories, but I believe it is
- 19:24only like 100 memories at a time.
- 19:26Or you can download a compressed file of your memories.
- 19:29But yes, I just thought I would share this update because it is
- 19:32something that might affect you or maybe you just didn't use
- 19:36Snapchat like a camera roll like I did.
- 19:37Well, that is everything from mini text scroll for today.
- 19:40I hope you guys enjoyed. Lauren will speak to you
- 19:43tomorrow and I will be back next week.
- 19:46Thanks for listening. Bye.